Planning For Your Retirement

The primary long-term goal for any personal investment plan is planning for retirement - investing excess income now to provide for a secure and comfortable lifestyle when we no longer can work, or, even better, when we no longer wish to work!

Today, with higher career volatility, corporate trends towards outsourcing and pension funds changing from defined benefit to defined contribution, the risk and responsibility for providing for retirement has shifted increasingly to the individual.

Remember, you will probably live longer than you expect - the improvement in medical technology and health habits will result (in time) in life spans of 90 and even 100 years becoming the rule rather than the exception. Someone retiring at 65 may well live a further 30 years or more.

Remember too that the cost of medical treatment, in particular, and general living expenses are increasing all the time and will continue to increase long after your retirement.

The younger you start to save and invest the easier it will be to meet your goals. The power of compounding returns over a few extra years can significantly increase your long-term returns.

Choosing the appropriate investment options will also make a significant difference to meeting your needs and goals. The Equinox.co.za investment approach favours a bias towards growth assets because their long term performance is far superior. With ever-increasing life spans we believe this holds true even for older investors - far more than conventional wisdom suggests.

Finally, it is beyond the scope and ability of Equinox.co.za to provide you with a full personal investment plan. As your wealth increases, we believe it is wise to consult a good financial advisor on helping you with a personalised plan. Bear in mind that a good financial advisor needs to work with you, in your best interests - not merely be a broker whose main interest may be in gaining commission from products sold.